VARIABLE INTEREST ENTITIES

v2.4.0.6

VARIABLE INTEREST ENTITIES	6 Months Ended
	Jun. 30, 2012
Variable Interest Entities [Abstract]
VARIABLE INTEREST ENTITIES	3. VARIABLE INTEREST ENTITIES   GED.  Our investment in unconsolidated joint venture was comprised of a 50% ownership interest in GED, a joint venture between us and Harrington Raceway Inc. (“HRI”). GED had a management agreement through August 31, 2011 with Harrington Raceway and Casino (“Harrington”) (formerly known as Midway Slots and Simulcast), which is located in Harrington, Delaware.  Under the terms of the joint venture agreement, as restructured in 2007, we received the greater of 50% of GED’s member distribution as prescribed under the joint venture agreement, or a 5% growth rate in its 50% share of GED’s prior year member distribution through the expiration of the GED management contract on August 31, 2011.  GED was a variable interest entity due to the fact that we had limited exposure to risk of loss. Therefore, we did not consolidate, but accounted for its investment using the equity method.   We sold our interest in GED to HRI during the fourth quarter of 2011 and our investment in GED was $0 as of December 31, 2011.      GED had no non-operating income or expenses, is treated as a partnership for income tax reporting purposes and consequently recognizes no federal or state income tax provision.  As a result, income from operations for GED is equal to its net income for each period presented, and there are no material differences between GED’s income for financial and tax reporting purposes.   GED CONDENSED STATEMENT OF INCOME INFORMATION       Three Months Ended     Six Months Ended       June 30, 2012     June 30, 2011     June 30, 2012     June 30, 2011   Revenues   $ --     $ 1,471,184     $ --     $ 3,032,728                                     Net income     --       1,332,095       --       2,754,524     GEM.  We directed the day-to-day operational activities of GEM that significantly impacted GEM’s economic performance, prior to the sale of our interest on March 30, 2012 and therefore, we were the primary beneficiary pursuant to the relevant portions of FASB ASC Topic 810 “Consolidation” [ASC 810-10-25 Recognition of Variable Interest Entities, paragraphs 38-39].  As such, the joint venture was a variable interest entity that was consolidated in our financial statements. Management believed the maximum exposure to loss from our investment in GEM was $8.1 million (before tax impact) as of December 31, 2011, which was composed of our share of contract rights and our equity investment that was eliminated in consolidation.  GEM had no debt or long-term liabilities.  GEM’s current assets of $2.5 million included the FireKeepers management fee receivable as of December 31, 2011.  Long-term assets included $7.9 million in contract rights as of December 31, 2011.       An unaudited summary of GEM’s operations follows:   GEM CONDENSED STATEMENT OF INCOME INFORMATION       Three Months Ended     Six Months Ended       June 30, 2012     June 30, 2011     June 30, 2012     June 30, 2011   Revenues   $ --     $ 5,912,434     $ 5,340,398     $ 12,276,676   Net income     --       5,412,841       4,362,345       10,627,000